Highlights
- Economy: Union Budget 2026-27 to be presented on 1 February; Economic Survey tabled. Key highlights: 6.5% growth projected, private capex recovery urged.
- Governance: CAG report on PM-KISAN: 38 lakh ineligible beneficiaries received transfers worth 3,000 crore rupees; database audit failures identified.
- Science: IISc researchers developed an ultra-thin solar cell using perovskite on flexible substrate; achieves 26% efficiency.
- International: UK submitted its 2035 climate commitment (NDC update) to UNFCCC: 81% emissions reduction from 1990 by 2035.
- Environment: India's first report on urban heat islands: 14 cities show 3-5°C elevated temperatures vs surrounding areas.
1. Economic Survey 2025-26 highlights
GS area: Economy, Governance
The Economic Survey was tabled in Parliament a day ahead of the Union Budget.
- Projected GDP growth: 6.5-6.8% real growth for FY26.
- Private investment: Gross fixed capital formation by private sector improved but unevenly distributed. Survey recommends regulatory de-burdening, land reform and labour reform to sustain private capex.
- Employment: Labour Force Participation Rate (LFPR) improved from 41.9% (2017-18) to 56.0% (2023-24) in urban areas. Female LFPR remains low at 27% in urban areas.
- Technology theme: Survey dedicates a chapter to AI and its implications for employment; recommends education reforms.
- Agriculture: FASAL (Forecasting Agricultural output using Space, Agro-meteorology and Land-based observations) system; crop insurance (PMFBY) enrolment reaching 5.5 crore farmers.
- Global risks: Survey flags US tariff escalation, Red Sea disruptions and El Nino as downside risks to FY26 forecast.
Static linkage: Economic Survey, national income, employment.
2. CAG report on PM-KISAN
GS area: Governance, Agriculture
The Comptroller and Auditor General's report on PM-KISAN (Pradhan Mantri Kisan Samman Nidhi) flagged:
- Ineligible beneficiaries: 38 lakh farmers received transfers despite not meeting eligibility criteria (government employees, income taxpayers, institutional landholders).
- Amount involved: Approximately 3,000 crore rupees improperly transferred.
- Database failures: State land records not synced with the national beneficiary database; Aadhaar verification not completed for all beneficiaries.
- PM-KISAN basics: Launched February 2019. Provides 6,000 rupees per year (in 3 instalments of 2,000 each) to farmer families. Direct Benefit Transfer (DBT) to farmer's Aadhaar-linked bank account.
- Scale: Approximately 11 crore registered farmers (as of FY26). Annual outlay: 60,000 crore rupees.
- CAG recommendation: Mandatory Aadhaar seeding completion, exclusion clause automation and state-level land record integration.
Static linkage: PM-KISAN, DBT, CAG.
3. Perovskite solar cell breakthrough
GS area: Science and Technology
IISc (Indian Institute of Science) researchers achieved 26% efficiency in a flexible perovskite solar cell.
- Perovskite solar cells: Named for their crystal structure. Material is typically methylammonium lead iodide (CH3NH3PbI3). They are cheaper to manufacture than silicon solar cells.
- 26% efficiency significance: This matches the best commercially available silicon solar cells (26.8% record). Perovskite solar cells started at 3% efficiency in 2009; improvement has been dramatically fast.
- Flexible substrate: Allows the cell to be used on curved surfaces (building facades, vehicle roofs, wearable devices).
- Challenge: Lead toxicity (perovskite typically contains lead) and stability (degradation from moisture and heat). Research is ongoing for tin-based perovskites and encapsulation solutions.
- India context: India has a target of 500 GW of renewable energy by 2030; perovskite technology could bring down costs of solar power further.
Static linkage: Solar energy, materials science, renewable energy.
4. UK's 2035 NDC update
GS area: Environment, International Relations
The UK submitted an updated Nationally Determined Contribution (NDC) to the UNFCCC: 81% emissions reduction from 1990 levels by 2035.
- Earlier UK commitment: 68% emissions reduction by 2030 from 1990 levels (submitted at Glasgow COP26 2021).
- 2035 target: 81% reduction; this is one of the most ambitious NDCs submitted by any country.
- UK's legal framework: Climate Change Act 2008 created legally binding 5-year "carbon budgets." The 2035 NDC aligns with the 6th carbon budget.
- Significance for India: Rich countries' ambitious NDCs are expected to generate larger climate finance flows to developing nations. India's NDC (45% emissions intensity reduction by 2030) is far less ambitious in absolute terms.
- NDC mechanics: NDCs are submitted every 5 years under the Paris Agreement. All countries are expected to "ratchet up" ambition with each NDC cycle.
Static linkage: Paris Agreement, NDCs, climate finance.
5. Urban heat islands in India
GS area: Environment, Governance
India's first comprehensive report on urban heat islands (UHIs) was released.
- What is a UHI: An urban area that is significantly warmer than its surrounding rural areas due to human modification of land surfaces.
- India report findings: 14 major cities (including Delhi, Mumbai, Bengaluru, Chennai, Hyderabad) show 3-5°C surface temperature elevation compared to surrounding rural areas.
- Causes: Dark surfaces (roads, rooftops) absorb more solar radiation; reduced vegetation cover reduces evapotranspiration cooling; waste heat from vehicles, air conditioners and industry; reduced wind flow due to high-rise buildings.
- Health impacts: UHI intensifies heatwave mortality risk; vulnerable populations (elderly, outdoor workers) at highest risk.
- Mitigation measures:
- Cool roofs (white or reflective coatings).
- Urban greening (parks, street trees).
- Permeable pavements.
- Building codes requiring green infrastructure.
- National Action Plan: The National Disaster Management Authority (NDMA) issued heatwave guidelines; some cities have heat action plans.
Static linkage: Urban environment, climate change, disaster management.
6. India-China LAC situation
GS area: International Relations, Defence
As January 2026 closes, the LAC situation was reviewed following the October 2024 patrolling agreement.
- October 2024 agreement: India and China reached an agreement to restore patrolling at Depsang and Demchok friction points in eastern Ladakh.
- Significance: The first formal agreement since the Galwan Valley clash (June 2020) that killed 20 Indian and 4 Chinese soldiers.
- Status January 2026: Patrolling resumed at key points. Troops disengaged and buffer zones maintained.
- Ongoing issues: China continues infrastructure build-up across the LAC. India is matching with roads, tunnels, helipads and forward bases under Project Himank (Border Roads Organisation).
- Trade tension: India-China trade was 118 billion USD in FY25 (the deficit heavily in China's favour at 85 billion USD). Trade continues even as military tensions persist.
Static linkage: India-China relations, Galwan, LAC.
7. Briefly noted
- PM-KUSUM (Kisan Urja Suraksha evam Utthaan Mahabhiyan): January 2026 data: 4 lakh solar pumps installed under component B; 10,000 decentralised solar plants (Component A) established on farmers' fallow land. The scheme aims to reduce diesel dependence in agriculture.
- Teesta River project (Bangladesh-India): India offered technical and financial support for the Teesta River Basin Management project after Bangladesh PM's visit in November 2025. The long-pending Teesta Water Sharing Treaty (negotiations since 2011) remains unresolved due to West Bengal's objections.
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